Agence France Presse

New Delhi, April 8:

India’s exports surged 24 per cent to a record 80 billion dollars for the year ended March, but a soaring oil import bill meant the country still ran a trade deficit, Trade Minister Kamal Nath said Friday.

“This growth is unprecedented in India’s economic history. If we can maintain the momentum I am confident that India will cross $150 billion” in exports by 2007, Nath said.

He said India could not only boost its less than one per cent share of world trade, but could also add as many as 10 million jobs over the next four years if it achieved the target.

India revised its export target for the current financial year started April 1, upwards to $92 billion from $88 billion in view of the “unprecedented achievement,” Nath said. Imports during the last financial year grew 34 per cent to $105 billion — exceeding export earnings by $25 billion — primarily because of a higher oil import bill as fuel prices rose to record levels in the past year.

“If oil imports were not counted, then our exports exceeded our imports by almost four billion dollars,” Nath said. India imports more than 70 per cent of its oil needs with demand growing as its economy expands. Nath said he was not worried by the rising oil bill, noting the country’s foreign currency reserves had swelled to a record $140 billion.

Nath released the trade figures along with a policy outlook for India’s exporters and importers in the next year. He said the government would shift away from focusing only on exports and seek to broaden trade by encouraging imports and trade in services such as outsourcing. “With this kind of involvement, India is inching towards becoming a significant player in international trade. This rapid growth signals a more pronounced integration with the global economy,” he said.

However, he said developed countries were thwarting efforts to increase trade by placing barriers such as restrictive visa policies and health, labor and environmental standards that were too severe.

At the same time, Nath said India was cutting import taxes and encouraging more investment.

“The paradox is that while India is opening up more and more, certain developed economies seem to be shutting up. It is these new instruments of discrimination which we have to fight against,” Nath said.